BlockBeats reported that on January 3, CoinDesk market analyst Omkar Godbole stated that Bitcoin reached an all-time high of over $108,000 in December 2024 but closed below $94,000 at the end of the month.
This bidirectional price movement formed a bearish reversal candle pattern known as a 'shooting star' on the monthly chart.
This pattern feature is a long upper shadow, reflecting a significant gap between the high and the opening price, while the candle body is relatively small, indicating a small difference between the opening and closing prices. The upper shadow needs to be at least twice the size of the body, while the lower shadow is usually very short or nonexistent. In the case of BTC, the upper shadow is almost four times the size of the body, and the lower shadow is nearly nonexistent.
The shape of the shooting star indicates that buyers initially pushed prices higher, but sellers began to take control near the peak, driving prices below the opening price, suggesting a possible return of bearish sentiment in the market.
The shooting star appears after a significant uptrend from $70,000 to over $100,000, warning of a possible bearish reversal. If prices break below December's low of $91,186, this reversal will be confirmed. This is a key level that bulls need to hold.
It is worth noting that similar long upper shadow candles also appeared at previous bull market tops.
The cautious signal conveyed by the latest shooting star aligns with the broader macroeconomic environment, indicating that risk assets may face challenges. This is primarily driven by the Federal Reserve's recent hawkish signals, rising treasury yields, and a strengthening dollar index.
Nevertheless, analysts remain confident that the Federal Reserve will retract its recent indication that it will reduce interest rate cuts in 2025, ensuring that the bullish trend for BTC and risk assets as a whole continues.
